Abstract

ORDONEZ-CASTANO, Iván Andrés  and  SANABRIA-DOMINGUEZ, Johana Andrea. Returns of education for formal and informal workers in Cali: an approximation with quantile regression and linear Splines. Entramado [online]. 2014, vol.10, n.2, pp.12-22. ISSN 1900-3803.

In this article we analyze returns of education for formal and informal workers with different levels of income in Cali. We use data from 2013 "Encuesta de Empleo y Calidad de Vida" (EECV) in order to estimate a semi-parametric quantile regression for wages with linear splines and correcting for selection bias. Our results suggest that the marginal rate of return of high-school and technical education is higher for informal workers than for formal ones, across the whole income distribution. In contrast, for workers whit higher education levels, it is more profitable to work in the formal sector. Our findings confirm that returns of education vary across schooling and income levels.

Keywords : Returns of education; sample selection; quantile regression; informality; selection bias.

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